On January 1, the largest tax increase ever will befall American taxpayers. That is, unless Congressional Democrats and Obama stop their nonsense about taxing the rich. According to the private-sector-hating Democrats, the rich need to pay more in taxes. Never mind the fact that they already pay more in taxes now than they did in the nineties. Never mind that the bottom 40 percent of taxpayers receive a net subsidy from the IRS. Never mind that raising taxes on ANYONE would cripple the already fragile economic recovery.
Republicans realize the the rich already pay more than their fair share of taxes. They don’t want ANYONE to face a tax increase at a time like this.
Democrats argue that extending the current rates will add $700 billion to the deficit. Suddenly, the Dems are deficit hawks.
They argue that the new top rates would be the same as they were under Clinton. They insist that, under Clinton, we were the most prosperous we have ever been. If that is the case, then why renew the tax break for the bottom 98%? Why not let all tax rates go back to what they were under Clinton? Instead, Dems want the income tax to be even more progressive than it already is. The rich already pay a higher share of the taxes under the Bush tax rates than they did under Clinton. Now, Dems want them to pay even more, even thought they already pay so much.
I’m not trying to argue that the rich alone are unfairly overtaxed. EVERYONE is taxed too much.
Besides, increasing tax rates never increases revenue in the long-run. The strength of the economy determines revenue much more than tax rates do. In 1995, tax revenue was 18.5% of GDP. In 2006, with lower tax rates for all, tax revenue was 18.4% of GDP. Despite the changes in tax rates over that period, tax revenue was the same, relative to GDP. To increase tax revenue and reduce the deficit, Democrats should stop bashing businesses, stop passing massive new laws that put excessive mandates on businesses, and get the hell out of the way of job creaters.
Democrats have been pushing fallacies, fictions, and frauds to make their arguments about the Bush tax cuts. I would go into more detail but my brain isn’t working right now.
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